Pension Watchdog says City Should Pay What It Owes

Audio

Aired 7/24/09

A former pension watchdog says changes that would lower the city of San Diego’s pension payment next year are misguided. KPBS reporter Katie Orr says April Boling wants to the city to pay what it owes, no matter the cost.

SAN DIEGO  A former pension watchdog says changes that would lower the city of San Diego’s pension payment next year are misguided. KPBS reporter Katie Orr says April Boling wants to the city to pay what it owes, no matter the cost.

If nothing changes, San Diego’s pension payment could increase more than $80 million next year to $236 million. The board that oversees the retirement system is considering accounting changes to limit that increase. Boling is the former chair of the city’s now defunct Pension Reform Committee. She says paying less would be a bad move.

“It would be a little bit like not making the required minimum payment on your credit card. Would it make it easier on you, yeah it would. Is it a good thing to do? No it’s not a good thing to do,” she says.

Boling says boards all over the country may be doing the same thing. But she says that doesn’t mean it’s a smart decision. She says this would just push the payment onto a future generation.

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